Binance Backs Ethena’s High-Yield Stablecoin Gambit

Binance has announced the listing of Ethena’s USDe stablecoin, marking a significant development for the growing synthetic stablecoin. Starting at 8:00 PM (Beijing Time) on September 9, 2025, the exchange will open spot trading for USDe/USDC and USDe/USDT pairs, with deposits already available. Withdrawals are scheduled to commence at the same hour the following day. Binance is offering a 0 BNB listing fee for USDe deposits, highlighting the platform’s strategic engagement with this fast-growing asset [6].

Ethena’s USDe has seen rapid adoption, with its circulating supply rising by approximately 42% in one month to exceed $12.4 billion. This growth has positioned USDe as the third-largest stablecoin by market capitalization, trailing only Tether’s USDT and Circle’s USDC. The expansion is attributed to its delta-neutral hedging mechanism, which uses short futures positions to maintain its peg, offering a crypto-native alternative to traditional stablecoins that rely on fiat-backed reserves [4]. The protocol’s approach has attracted significant institutional interest, particularly in DeFi strategies involving recursive lending and yield compounding.

A key milestone in USDe’s development is the upcoming activation of a fee switch, which will allow ENA token holders to receive a share of protocol revenues for the first time. The ENA fee switch proposal, approved in November 2024, requires the completion of three milestones: surpassing $6 billion in USDe supply, achieving at least $250 million in cumulative protocol revenue, and securing listings on four of the top five centralized exchanges by derivatives volume. Ethena has already met the first two conditions, with exchange listings remaining the final prerequisite. Guy Young, Ethena’s founder, has emphasized that securing these listings is a top priority for the team [4].

To support this strategy, Ethena has raised substantial funding through a partnership with StablecoinX and TLGY Acquisition Corp. The two firms secured $530 million in new private investment in public equity (PIPE) financing, bringing their total war chest to $890 million. The capital will be used to acquire up to 3 billion ENA tokens, with additional buybacks from the Ethena Foundation contributing to a total buyback program of $570 million. Investors in the initiative include major institutional players such as Brevan Howard, Susquehanna Crypto, and Dragonfly Capital, underscoring confidence in the project’s long-term viability [1].

The rise of USDe has also been bolstered by its integration into major DeFi protocols such as Aave and Pendle, where users can deploy the stablecoin into yield-generating strategies. The token’s synthetic dollar model and ability to generate funding rate income have made it attractive to both retail and institutional participants. On-chain data reveals that USDe deposits have surged in the past 30 days, primarily driven by high staking yields [5]. As a result, Ethena’s tokenomics and governance model are increasingly influencing the broader stablecoin market.

While USDe’s rapid growth has garnered attention, it has also drawn scrutiny. S&P Global has flagged the token for higher risk due to its reliance on derivatives, and Chaos Labs has raised concerns about liquidity strains and potential rehypothecation risks. Nonetheless, Ethena’s unique approach continues to resonate with users seeking yield-generating opportunities in a competitive stablecoin landscape. With Binance’s listing further expanding its accessibility, USDe is well-positioned to continue its ascent among the top stablecoins globally.

Source:

[1] StablecoinX Secures $530M Investment to Back Ethena-Linked Treasury (https://www.coindesk.com/business/2025/09/06/stablecoinx-secures-usd530m-investment-to-back-ethena-linked-treasury)

[2] Ethena Staked USDe Price Chart (SUSDE) (https://www.coingecko.com/en/coins/ethena-staked-usde)

[3] USDe: The Next Big Thing in Stablecoins? (https://www.onesafe.io/blog/ethena-labs-fee-switch-ena-token-valuation)

[4] Ethena's USDe has become the third-largest stablecoin (https://www.mitrade.com/insights/news/live-news/article-3-1089738-20250903)

[5] Stablecoin Total Exceeds 283.7 Billion, USDe Reaches a (https://www.panewslab.com/en/articles/bb1835c6-2bdf-4d0d-9149-4c4bcc3f8451)

[6] Binance to List Ethena USDe (USDe) and Open Spot Trading (https://www.panewslab.com/en/articles/51740e1f-325e-45bd-8f4f-40a3066f8f6b)